Development of a Normative Framework for the management of an
Integrated Public Service System and Public Value generation with
regard to municipalities in the Western Cape province
Fakier Jessa
Dissertation presented in fulfilment of the requirements for the degree of
Doctor of Philosophy in the Faculty of Business and Management Sciences at Stellenbosch University
Promotor:
i DECLARATION
By submitting this dissertation electronically, I declare that the entirety of the work contained therein is my own original work, that I am the sole author thereof (save to the extent explicitly otherwise stated), that reproduction and publication thereof by Stellenbosch University will not infringe any third party rights and that I have not previously in its entirety or in part submitted it for obtaining any qualification.
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ii An Integrated Public Service System (IPSS) generating public value (PV) was designed to demonstrate the feasibility and implementability of a complementary system of governance, to counter the hierarchical systemic characteristics in municipalities at present. Despite the awareness of constraining factors such as political volatility, intransigence, fragmentation, silo structuring, power enclaves and organisational weaknesses in municipal government, communities have experienced long-term instability, service delivery failures and disruption of their social and economic wellbeing, owing to the housing delivery and community services departments’ lack of responsiveness and lack of reciprocity in general.
The study utilises information regarding patterns and trends in housing delivery and community services in Namibia, South Africa and the United Kingdom to substantiate the need for an IPSS and PV generation, with community engagement as the fulcrum determining the success or failure of the IPSS and PV generation. A comprehensive mixed study, with a focus on the analysis of nine IPSS and PV themes, was concluded to support the study objectives outlined in Chapter 1. In addition, a critical analysis of South African local government legislation revealed support for the provision of an IPSS and the legitimacy of generating PV.
An IPSS generating PV applies the principles and elements of nonlinearity synergistically in network theory, open systems theory, complexity science, complex adaptive systems (CAS), actor-network theory (ANT), PV theory and collaborative governance. A model for integration thus emerges as a result of these applications; hence ‘open government’ systems apply the ‘systemic’ elements of openness, flexibility, dynamism, holistic development, accountability, transparency, intractability, autopoiesis (self-regulatory and self-organising operations) and relationships of trust. An integrative stakeholder management team assumes responsibility for collaboration, the co-creation of tangible and nontangible PV, equity, efficiency, effectiveness, efficacy, bottom-up participation and innovation; the stakeholder team drives community programmes and projects through effective public engagement, maximising resources, information and capacity to achieve common objectives aligned to broad social and economic goals. Discursive and deliberative dialogue are therefore crucial tools in IPSS operativity. An IPSS generating PV is driven strategically by common stakeholder objectives and broad social and economic demands, i.e. envisaged PV outputs and outcomes necessary for achieving
iii delivery and community services encompasses citizens’ needs, demands and expectations. Municipalities would benefit significantly from the adoption of an IPSS (or IPSS clusters), in the execution of community-based programmes, regeneration programmes and projects.
The recommendations made to municipalities in this dissertation should have a positive impact on (i) the effective application of municipal legislation, (ii) the participatory role of communities in the obligations of a municipality to community development, (iii) open dialogue with communities, (iv) working with communities as an equal partner (stakeholder), and (v) the adoption of community stability (balance and equilibrium) as an end goal. In response to the initiation and implementation of an IPSS cluster generating PV, a crucial recommendation remains the formulation of a modus operandi for IPSS clusters to effect the holistic (interdisciplinary and inter-departmental) integration of the housing delivery and community services departments, as the objectives of these departments cannot be disparate or at variance with those of the communities.
iv ’n Geïntegreerde Openbare Dienstelsel (IPSS), wat openbare waarde (PV) genereer, is ontwerp om die uitvoerbaarheid en implementeerbaarheid van ’n komplementêre bestuurstelsel tot die hiërargiestelsel, wat tans in munisipaliteite aanwesig is, te demonstreer. Hoewel bewus van beperkende faktore soos politiese onbestendigheid, onverdraagsaamheid, fragmetering, silo-strukture, magsenklawes en organisatoriese swakhede, binne munisipale bestuur, het gemeenskappe langtermyn onstabiliteit, diensleweringstaking en aftakeling van hulle sosiale en ekonomiese welsyn ervaar – veral van die kant van die afdelings verantwoordelik vir lewering van behuising en gemeenskapsdienste, en dit as gevolg van munisipale traagheid, gebrek aan antwoordende optrede en gebrek aan wederdiens oor die algemeen.
Dié studie gebruik inligting oor patrone en tendense rakende behuisingslewering en gemeenskapsdienste in Nambië, Suid-Afrika en die Verenigde Koninkryk om die behoefte aan ’n IPSS- en PV-generasie te staaf, met gemeenskapsbetrokkenheid as die toppunt van sukses en mislukking van die IPSS- en PV-generasie. ’n Omvattende allesoortige studie, met die fokus op die ontleding van nege IPSS- en PV-temas is afgesluit om die studiedoelwitte, wat in hoofstuk 1 uiteengesit is, te onderskraag. Daarbenewens het ’n kritiese blik op wetgewing ten opsigte van Suid-Afrikaanse plaaslike regering steun ontdek vir die voorsiening van ’n IPSS- en PV-generasie legitimiteit.
’n IPSS-genererende PV pas die beginsels en elemente van nie-liniêariteit sinergisties toe in netwerkteorie, ope stelselsteorie, kompleksiteitskunde, komplekse aanpasbare stelsels (CAS), akteurnetteorie (ANT), PV-teorie en samewerkende bestuur. ’n Model vir integrasie bestaan dus as gevolg van hierdie toepassings. Openbare ‘regerings’-stelsels is derhalwe van toepassing op die sistemiese elemente van openheid, buigsaamheid, dinamika, holistiese ontwikkeling, aanspreeklikheid, deursigtigheid, weerbarstigheid, outopoiëse (selfregulerende en selforganiserende operasies) en vertrouensverhoudinge. ’n Integrerende bestuurspan van belanghebbendes aanvaar verantwoordelikheid vir samewerking, mede-skepping van tasbare en onontbeerlike PV, billikheid, effektiwiteit, doeltreffendheid, komplekse deelname en innovasie; die bestuurspan van belanghebbendes dryf gemeenskapsprogramme en -projekte deur doeltreffende openbare betrokkenheid, die maksimalisering van hulpbronne, inligting en kapasiteit om gemeenskaplike doelwitte te behaal wat in lyn is met breë sosiale en ekonomiese
v operasies. ’n IPSS-genererende PV word strategies gedryf deur gemeenskaplike belanghebbende doelwitte en breë sosiale en ekonomiese eise; dit wil sê PV-uitsette en uitkomste wat nodig is vir die bereiking van stabiliteit, aanpasbaarheid, volhoubaarheid en produktiwiteit; die vraag na geïntegreerde behuisingslewering en gemeenskapsdienste sluit hierdie behoeftes, eise en verwagtings van die burgers in. Munisipaliteite sal aansienlike voordeel trek uit die diens van ’n IPSS (of IPSS-groepe) wat betref die uitvoering van gemeenskap-gebaseerde programme, herlewingsprogramme en projekte.
Die aanbevelings aan munisipaliteite in dié proefskrif behoort ’n positiewe impak hê op (i) die doeltreffende toepassing van munisipale wetgewing, (ii) die deelnemende rol van munisipaliteite in die verpligtinge van ’n munisipaliteit in sy strewe na gemeenskapsontwikkeling, (iii) oop dialoog met gemeenskappe (iv) werk met gemeenskappe as gelyke vennote (belanghebbendes) en (v) die aanvaarding van gemeenskapstabiliteit (balans en ewewigtigheid) as ’n einddoel. In reaksie op die inisiëring en implementering van ’n IPSS-groeperende PV, bly ’n belangrike aanbeveling die formulering van modus operandi vir IPSS-groepe vir die holistiese (interdissiplinêre en interdepartementele) integrasie van die department(e) vir behuisingslewering en gemeenskapsdienste aangesien die doelwitte van hierdie department(e) nie uiteenlopend of afwykend kan wees met dié van gemeenskappe.
vi First and foremost, I would like to thank Professor Frederik Martin Uys, School of Public Leadership, Stellenbosch University, for his invaluable insights, time and support in supervising this dissertation; for his unassuming manner of teaching, and for enriching my understanding of conducting research.
My indebtedness and appreciation to Ms Jennifer Saunders and Professor Emeritus E. Hees for reading and editing my work. My appreciation to Professor Martin Kidd, for his help with the statistical analyses of my data and subsequent guidance.
My sincere thanks to the USBL and USL&IS library staff, who never failed to provide an excellent service. My sincere thanks to Riana Moore for her sincerity and directness.
A special thanks to Professor Emeritus John Benington (Warwick University, UK), Professor Eve Mitleton-Kelly (London School of Economics, UK) and Professor Umit Bititci (Heriot-Watt University, Manchester, UK) for contributing theoretical substance to the formulation of the concept of an integrated public service system (IPSS) generating public value (PV).
My appreciation and gratitude go to the senior managers of the City of Cape Town and local municipalities in the Western Cape province housing delivery and community services departments for their willing participation in my research. A special thanks to the Western Cape Provincial Department of Human Settlements senior managers for their time, information and perspectives offered for interviews granted. Many thanks also to the staff at the Ministry of Regional and Local Government, Housing and Rural Development (MRLGHRD), Windhoek, Namibia, for discussions held and documents supplied.
Finally, I wish to thank the National Research Foundation (NRF) of South Africa for their financial support in the undertaking of this dissertation [Grant number SFH150709124819].
Cheers and thanks to Sirhan, Zuben, Tasneem, Mikael, Sara, Patrick and Rhally, in interchangeable order, for their constant support, distraction, entertainment and love.
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Declaration i
Abstract ii
Opsomming iv
Acknowledgements vi
Table of Contents vii
List of Tables xx
List of Figures xxiii
List of Acronyms xxvii
CHAPTER 1: AN OVERVIEW OF MANAGING AN INTEGRATED PUBLIC SERVICE SYSTEM (IPSS) GENERATING PUBLIC VALUE (PV) WITH REGARD TO MUNICIPALITIES IN THE WESTERN CAPE PROVINCE
1.1 Introduction 1
1.2 Background 2
1.3 Motivation for the study 4
1.4 Literature review 5
1.4.1 Factors influencing PV generation in a complex environment 5
1.4.2 An overview of chaos and complexity theory relative to PV generation 6 1.4.3 Complexity in the context of South African Institutions of State (IOS) 8
1.4.4 A network approach to the IOS 9
1.4.5 The national ‘citizenry’ network in relation to the IOS 10
1.4.6 Networks: Establishing the relation between complex adaptive systems (CASs)
and IPSSs 11
1.4.6.1 Commonalities between CASs and IPSSs 11
1.4.6.2 Characteristics of CASs and IPSSs 12
1.4.6.3 Contributions from CASs to the study of IPSSs 13
1.4.7 CASs, IPSSs and networks: Developing a basis for measuring PV 14
1.4.7.1 Exploring measures for PV based on network analysis 14
1.4.7.2 Exploring measures for PV in complex systems 17
1.5 Background and orientation to the research problem and research questions 19
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1.5.3 Research questions 22
1.6 Research premises and objectives 22
1.6.1 Research premises 22
1.6.2 Research objectives 23
1.7 Significance of the study 24
1.8 Research design and methodology 24
1.8.1 The population and sampling procedure 25
1.8.2 The unit of analysis 25
1.8.3 Data collection 25
1.8.4 Reliability and validity 25
1.8.5 Data analysis and interpretation 26
1.9 Limitations of the study 26
1.10 Research ethics 26
1.11 Chapter outline 27
1.12 Summary 29
CHAPTER 2: A LITERATURE REVIEW OF AN INTEGRATED PUBLIC SERVICE SYSTEM (IPSS) AND THE GENERATION AND MEASUREMENT OF PUBLIC VALUE (PV)
2.1 Introduction 30
2.2 Background 31
2.3 Fundamental elements of an IPSS 31
2.3.1 The concept of complexity 32
2.3.2 The concept of integration 33
2.3.3 The concept of networks 34
2.3.3.1 Networks and governance 35
2.3.3.2 The value of networks 35
2.3.3.3 Strength of networks 35
2.3.3.4 Networks have common axes with actor network theory (ANT) and complex
adaptive systems (CASs) 36
2.3.3.4.1 Actor network theory (ANT) 36
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2.4.1 IPSSs evolve from simple to complex structures 39
2.4.1.1 Structural holes and IPSS ties 39
2.4.1.2 Relationships between nodes 40
2.4.1.3 Strong and weak relationship ties 41
2.4.2 Equilibrium vs. disequilibrium 42
2.4.3 IPSS growth 44
2.5 Towards a framework for an IPSS 45
2.5.1 Presenting a nonlinear IPSS model 45
2.5.2 IPSS operability 47
2.5.3 IPSS evaluation criteria expressed as efficiencies 50
2.6 Management issues relating to an IPSS 51
2.6.1 Management of governing objectives in an IPSS 51
2.6.2 IPSSs collaborative governance elements 52
2.6.2.1 Factors that promote sound collaborative governance in an IPSS 52 2.6.2.2 Factors that constrain collaborative governance in an IPSS 53
2.7 Integrative leadership 55
2.7.1 The tasks of integrative leaders 55
2.7.2 Integrative leaders encourage strategic alliances in an IPSS 57
2.7.3 Leadership by stakeholder teams 58
2.7.4 The stakeholder Power-Interest Grid 58
2.7.5 Practical applications of IPSSs 59
2.7.6 Challenges to integrative leadership in developing countries 60
2.8 Defining Public Value (PV) 61
2.8.1 Approaches to PV theory 63
2.8.1.1 New Public Management (NPM) and PV Management approaches 64
2.8.1.2 The public value perspective (PVP) approach 64
2.8.1.3 The governance approach to PV 65
2.8.1.4 An economic approach to PV 65
2.8.1.5 The Public Value Mapping (PVM) approach 66
2.8.1.6 The PV-failure approach 66
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2.9.1 The normative-consensus model of PV generation 69
2.9.2. Employing the PV ‘value chain’ in PV production in an IPSS 69
2.9.3 A humanist approach to PV generation 70
2.9.4 A model for PV generation and measurement in an IPSS 72
2.10 Measuring PV 73
2.10.1 Utilising a survey methodology 73
2.10.2 Utilising a criteria-driven framework 73
2.10.3 Utilising a Public Value Scorecard (PVSC) 74
2.10.4 The Competing Values Framework (CVF) 75
2.11 Case studies: PV assessments 76
2.11.1 The Twin-Cities ‘experiment’ in PV generation (for a developed country) 76
2.11.2 The BBC’s “Two-Step” PV test referred to as the PVT 76
2.11.3 PV criteria emerging from studies in underdeveloped communities 77
2.12 Summary 78
CHAPTER 3: SOUTH AFRICAN LOCAL GOVERNMENT LEGISLATION AS A PLATFORM FOR THE IMPLEMENTATION OF AN INTEGRATED PUBLIC SERVICE SYSTEM (IPSS) AND THE GENERATION OF PUBLIC VALUE (PV)
3.1 Introduction 80
3.2 The topology of IOS in the South African bureaucratic institutional context 81 3.2.1 The Weberian context of municipal operationality in South Africa 86 3.2.2 Deliberative democracy in the South African context 87 3.3 A context for IPSS operability with regard to municipalities in South Africa 88
3.3.1 A networked system of governance 88
3.3.2 Pragmatic legislative-authoritative elements of an IPSS 89
3.3.3 Networked governance offers advantages for small municipalities in South Africa 90 3.4 A review of local government legislation in relation to IPSS feasibility and PV
generation in municipalities 91
3.4.1 The Constitution of the Republic of South Africa, 1996 91
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3.4.1.3 Municipal regulations in terms of the Constitution 94
3.4.1.4 Municipal organisational dynamics in terms of the Constitution 95
3.4.2 The Organised Local Government Act, 1997 (52 of 1997) 96
3.4.3 The White Paper on Local Government (1998) 97
3.4.4 Local Government: The Municipal Structures Act, 1998 (117 of 1998) 99 3.4.5 Local Government: The Municipal Systems Act, 2000 (32 of 2000) 102
3.4.6 The Public Finance Management Act, 1999 (1 of 1999) 103
3.4.7 Local Government: The Municipal Finance Management Act, 2003
(56 of 2003) 105
3.4.8 The Intergovernmental Relations Framework Act, 2005 (13 of 2005) 107 3.4.9 The Public Administration Management Act, 2014 (11 of 2014) 109 3.5 Factors influencing legislation with regard to IPSS emergence in South Africa 111
3.5.1 The municipal political-administrative interface 111
3.5.2 South African government’s responsiveness to citizens 113
3.5.3 Stakeholders, partnerships and alliances 114
3.5.4 Monitoring and evaluation in municipalities 115
3.5.5 Relative municipal autonomy 118
3.5.6 Development criteria for IPSS success 119
3.5.7 Integrating elements of the National Development Plan (NDP) and Integrated
Development Plans (IDPs) in the IPSS 121
3.6 Summary 123
CHAPTER 4: THE INTEGRATED PUBLIC SERVICE SYSTEM (IPSS) AND PUBLIC VALUE (PV) GENERATION IN WINDHOEK (NAMIBIA) AND LONDON (UNITED KINGDOM)
4.1 Introduction 125
4.2 The need to integrate public housing delivery and community development
(services) for effective IPSS operativity and PV generation 126
4.3 Rental and affordable public housing delivery with community development
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Windhoek, Namibia 128
4.3.2 Legislative aspects for housing delivery in Namibia 129
4.3.2.1 The National Housing Development Act, 2000 (28 of 2000) 129
4.3.2.2 The National Housing Policy (2009) 129
4.3.2.3 The Harambee Prosperity Plan (HPP) 2016-2020 130
4.3.2.4 The Mass Housing Development Blueprint (2013) 132
4.3.3 The role of the Institutions of State (IOSs) responsible for housing delivery 133 4.3.3.1 The Ministry of Regional and Local Government, Housing and Rural
Development (MRLGHRD) 134
4.3.3.2 Permanent Technical Team (PTT) on Land Reform (2005) 134
4.3.3.3 The City of Windhoek 134
4.3.3.4 The Namibian National Housing Enterprise 135
4.3.4 Programmes related to housing delivery and the consequences for community
development 135
4.3.4.1 The Build Together Programme (BTP) 136
4.3.4.2 The Targeted Intervention Programme on Employment and Economic Growth
(TIPEEG) 137
4.3.4.3 The Shack Dwellers Federation of Namibia 138
4.3.4.4 The housing programme of the Affirmative Repositioning Movement in
Namibia 140
4.3.4.5 Public-private partnership initiatives for housing delivery in Namibia 141 4.4 An overview of tenancy, affordable housing delivery and community development
services in the London metropolitan area, United Kingdom 143
4.4.1 Background 143
4.4.2 London’s poverty profile and a focus on homelessness 146
4.4.3 United Kingdom legislation governing housing delivery 149
4.4.3.1 The United Kingdom Housing Act of 1996, Chapter 52 149
4.4.3.2 The United Kingdom Housing Act of 2004, Chapter 34 150
4.4.3.3 The Public Services Act, 2012, Chapter 3 151
4.4.3.4 Local Government Act, 2003, Chapter 26 152
xiii 4.4.4 Quasi-autonomous non-government organisations (QUANGOs) implementing
social housing regulations and policies in the UK 154
4.4.4.1 Department for Communities and Local Government (Homes England) 154
4.4.4.2 The Centre for Public Scrutiny (CfPS) 155
4.4.4.3 Private housing agencies and associations in the UK housing provision sector 156 4.4.5 Complexities of housing provision for the Greater London Area 157
4.4.5.1 London’s housing crisis 157
4.4.5.2 The need for greater public involvement in housing delivery in London 159
4.4.5.3 A review of housing standards for London boroughs 160
4.4.5.4 Report from global HATC Ltd consultant to the GLA 2006 161
4.4.6 A case study: Integration and PV generation in Beacon Estate, Penwerris,
Cornwall, UK 162
4.4.6.1 Conditions in the Beacon Estate, Penwerris, prior to 1995 163
4.4.6.2 The transformation of the Beacon Estate community 163
4.4.6.3 C2-Connecting Communities Learning Programme 164
4.4.6.4 Public value generated for the Beacon Estate community 165
4.4.6.5 The C2-Connecting Communities 7-Step Framework for community regeneration 166
4.5 Summary 168
CHAPTER 5: HOUSING AND COMMUNITY SERVICES DELIVERY IN THE WESTERN CAPE PROVINCE: A CASE STUDY FOR AN INTEGRATED PUBLIC SERVICE SYSTEM (IPSS) CLUSTER GENERATING PUBLIC VALUE (PV)
5.1 Introduction 173
5.2 Background 173
5.3 Housing legislation and regulation as it relate to an IPSS generating PV 175
5.3.1 The Constitution of the Republic of South Africa, 1996 175
5.3.2 The White Paper on Housing (1994) 177
5.3.3 The Housing Act, 1997 (107 of 1997) 177
5.3.4 The Social Housing Act, 2008 (16 of 2008) 179
5.3.5 The National Housing Code of South Africa (2009) 180
xiv 5.4.2 The low impact of the National Development Plan 2011 on housing policy and
delivery strategy 186
5.4.3 A practical example of the Integrated Residential Development Programme
(IRDP) initiative in Cape Town 188
5.4.4 Political dynamics in the human settlements and community development arena 189 5.5 The non-government social sector organisations in the Western Cape province 191
5.5.1 The South African SDI Alliance (SASDIA) 191
5.5.2 Violence Prevention through Urban Upgrading (VPUU) 192
5.5.3 PlanAct 193
5.5.4 Development Action Group (DAG) 193
5.6 The importance of effective IOS reporting: The Annual Report of the
Western Cape Provincial Department of Human Settlements (DHS) 2016-2017 194
5.7 Investment and integration approaches in housing delivery 195
5.7.1 Advancing an investment-driven approach to affordable and social housing 196 5.7.2 Integration between the Department of Human Settlements (DHS) and the Department
of Social Development (DSD) in respect of IPSS clusters and PV generation 198 5.8 Challenges arising in the delivery of housing and community services 199
5.9 Summary 201
CHAPTER 6: QUALITATIVE AND QUANTITATIVE STUDY ON THE
MANAGEMENT OF AN INTEGRATED PUBLIC SERVICE SYSTEM (IPSS) GENERATING PUBLIC VALUE (PV)
6.1 Introduction 202
6.2 Research orientation 203
6.3 Research problem, problem statement and research questions 203
6.4 Research premises and research objectives 203
6.5 Questionnaire objectives 204
6.6 Research design, philosophical point of departure and methodology 204
6.7 The data-collection process 206
6.8 The pilot phase 208
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work and involvement with internal and external pressures 209
6.11 Theme 2. An assessment of the senior managers’ approach towards the practice of integration and collaboration in their departments, relative
to PV generation 215
6.12 Theme 3. Senior managers’ response to the level of importance of fifteen (15) IPSS statements actually utilised by the Departments of Community Services
and Housing 219
6.13 Theme 4. Assessing service delivery statements with senior managers, relative
to the generation of PV through an IPSS 221
6.13.1 The Likert scale items 4.1 to 4.15 221
6.13.2 Ranked PV-generating items 4.16 and 4.17 in support of community building 224 6.14 Theme 5. Managements’ readiness to engage with stakeholders in promoting
collaboration, collaborative governance, integration and PV generation 226 6.15 Theme 6. IPSS measures for generating PV outputs, outcomes and adaptation in
respect of transformation in municipalities 229
6.16 Theme 7. The examination of 16 IPSS operations and performance-
management functions for facilitating effective and efficient PV generation 231 6.17 Theme 8. Assessing the feasibility and potentiality for the emergence of an
IPSS generating PV in the future 235
6.17.1 Analysis of the Likert scale data set 235
6.17.2 Analysis of 5 transformational characteristics applicable to future dynamic
and interconnected municipalities (concerning community services) 239 6.17.3 Analysis of 5 transformational characteristics applicable to future dynamic
and interconnected municipalities (concerning integrated systems) 240 6.18 Theme 9. Respondents’ willingness to shift from hierarchical to
collaborative governance systems in the future 241
6.18.1 Analysis of shifting from hierarchical governance to collaborative governance 241 6.18.2 Training needs for developing internal and external capacity in respect of shifting
from hierarchical governance to collaborative governance practice 246 6.18.2.1 Training needs for developing internal capacity in respect of practicing
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collaborative governance in the future 248
6.19 Commonly recurring points raised by respondents 249
6.20 Semi-structured interviews with senior managers in the Western Cape Provincial Government’s Department of Human Settlements (DHS) and the City of Cape
Town’s (CCTs) Transport and Urban Development Authority (TDA) 249
6.20.1 Purpose of the semi-structured interviews held at the Western Cape
Provincial Government’s Department of Human Settlements (DHS) 250
6.20.2 Purpose of the semi-structured interviews held at the City of Cape Town’s (CCT)
Transport and Urban Development Authority (TDA) 250
6.20.3 Summary of findings from semi-structured interviews 250
6.20.4 Structure and functioning of the City of Cape Town’s ODTP 252
6.21 Presentation of qualitative and quantitative findings 254
6.22 Summary 258
CHAPTER 7: A CRITICAL EVALUATION OF AN INTEGRATED PUBLIC SERVICE SYSTEM (IPSS) AND PUBLIC VALUE (PV) GENERATION IN THE WESTERN CAPE PROVINCE MUNICIPALITIES
7.1 Introduction 260
7.2 Background 260
7.3 The current municipal environment: Challenges and problems 261
7.3.1 The status quo, inertia and path dependency in municipalities 261
7.3.2 The problem of fragmentation in municipalities 263
7.3.3 The slow growth in municipal capacity 264
7.3.4 Macro-, Meso- and Micro-level implications for a holistic approach to IPSS
operativity and PV generation 265
7.3.5 Concerns regarding the Integrated Development Plans (IDPs) 266
7.3.6 Political astuteness 268
7.4 Systemic properties of an IPSS: Challenges and problems 269
7.4.1 Managing complexity 269
7.4.2 Demystifying networks in municipalities 272
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7.5 IPSS legitimacy 276
7.5.1 The Constitution of the Republic of South Africa, 1996 279
7.5.2 The significance of the White Paper on Local Government (1998) for the
IPSS and PV generation 280
7.5.3 The Municipal Structures Act, 1998 (117 of 1998) 281
7.5.4 The Municipal Systems Act, 2000 (32 of 2000) 283
7.5.5 The Municipal Finance Management Act, 2003 (56 of 2003) 284
7.5.6 The Intergovernmental Relations Framework Act, 2005 (13 of 2005) 285
7.5.7 The Public Administration Management Act, 2014 (11 of 2014) 286
7.5.8 Legislative shortcomings with regard to the integration of housing delivery
and community services: South Africa, Namibia and the United Kingdom (UK) 286
7.5.8.1 South Africa, Namibia and UK housing legislative concerns 287
7.5.8.2 South Africa, Namibia and UK housing demand dynamics 288
7.6 Transformation challenges 289
7.6.1 Municipal transformation as an innovation 291
7.6.2 Effective feedback, deliberation and reflection as ‘systemic’ catalysts in an IPSS 291 7.6.3 Preservation of municipal institutional culture: Attitudes and behaviours 292
7.6.4 Findings regarding constraints to municipal transformation 292
7.6.5 Senior managers’ shift from hierarchical to collaborative governance 293
7.6.6 Transformation in the City of Cape Town 294
7.6.7 Challenges regarding ‘systemic’ transformation effectiveness in an IPSS 295
7.7 Implementation of an IPSS generating PV 296
7.7.1 The IPSS ‘operations’ model 296
7.7.2 Key challenges facing the implementation of an IPSS and PV generation 297
7.8 IPSS operational performance 303
7.8.1 Identifying the challenges in IPSS performance management 303
7.8.2 Challenges relative to IPSS performance in the municipal context 303
xviii SERVICE SYSTEM (IPSS) AND PUBLIC VALUE (PV) GENERATION IN THE WESTERN CAPE PROVINCE MUNICIPALITIES
8.1 Introduction 313
8.2 Acknowledging key IPSS and PV normative imperatives 313
8.3 The municipal environment ‘as it should be’ 314
8.3.1 Status quo, inertia and path dependency in municipalities 314
8.3.1.1 From static to dynamic municipal context 315
8.3.1.2 Shaping a new municipal paradigm 316
8.3.1.3 Advancing holistic, realistic and flexible insights in management practice 316 8.3.2 Overcoming fragmentation through connectivity, self and co-regulation 316 8.3.3 Enhancing capacity among municipal officials for IPSS initiation and PV
generation 317
8.3.4 Macro-, Meso- and Micro-level interconnectivity for IPSS initiation and
adoption 319
8.3.5 The Integrated Development Plan (IDP) as a strategic tool 320
8.3.6 Recommendations on developing political astuteness 321
8.4 IPSS and PV generation: ‘Systemic’ norms and properties 321
8.4.1 Managing complexity successfully 323
8.4.2 Recognising equilibrium as a norm 325
8.4.3 Integration as a norm in municipalities 325
8.4.4 Prevention of IPSS failure 326
8.5 Normative framing for IPSS legitimacy 327
8.5.1 The Constitution of the Republic of South Africa, 1996 331
8.5.2 The Housing Act, 1997 (107 of 1997) 332
8.5.3 The implication of the White Paper on Local Government (1998) for the IPSS
and PV generation 332
8.5.4 The Municipal Structures Act, 1998 (117 of 1998) 333
8.5.5 The Municipal Systems Act, 2000 (32 of 2000) 334
8.5.6 The Municipal Finance Management Act, 2003 (56 of 2003) 335
8.5.7 The Intergovernmental Relations Framework Act, 2005 (13 of 2005) 337 8.5.8 The Public Administration Management Act, 2014 (11 of 2014) 337
xix 8.6 Normative imperatives for systemic transformation in municipalities 339
8.6.1 Municipal transformation as an innovation 340
8.6.2 Utilising feedback, deliberation and reflection as ‘systemic’ tools 341 8.6.3 A normative view of municipal institutional culture, attitudes and behaviour
from an IPSS perspective 341
8.6.4 Harnessing synergy in municipal systemic transformation 342
8.6.5 A governance model appropriate for an IPSS generating PV 343
8.6.6 Evaluating effective community engagement 343
8.6.7 Transformation in the City of Cape Town (CCT) 343
8.7 A normative approach to IPSS implementation and PV generation: A model,
operating tools for an IPSS framework and recommendations 344
8.8 A normative approach to IPSS operational performance 353
8.8.1 Identifying IPSS performance management imperatives 353
8.8.2 Presenting an IPSS cluster performance model 354
8.9 Consolidated recommendations for implementation over the short, medium
and long terms 360
8.10 Contribution to new knowledge 363
8.11 Suggested further research 363
8.12 Conclusion 364
BIBLIOGRAPHY 366
ANNEXURES:
Annexure A An interviewer administered questionnaire 405
Annexure B Statistical information 421
Annexure C Information obtained from open-ended questions 477
Annexure D Semi-structured interview questions and responses 495
Annexure E Key elements for public value management (PVM), public value (PV)
generation and evaluation in an integrated public service system (IPSS) 503
xx
Table 1.1: The PV Measurement Framework (an example) 17
Table 2.1: Qualities of a structuralist and post-structuralist governance system 39 Table 2.2: Summary of factors constraining and promoting integration 55
Table 2.3: Integrative leadership criteria 56
Table 2.4: Relation between basic needs and four basic value dimensions of PV 70 Table 2.5: Four PV frames for administration and governance in PV generation 71 Table 2.6: PV criteria employed by focus group in Twin Cities, Minnesota 76
Table 2.7: PV concerns applicable to poor communities (Belgium) 78
Table 3.1: Explanation to Figure 3.2 regarding Institutions of State (IOS) in the
Western Cape province, potential IPSS network actors 84
Table 3.2: A comparison of bureaucratic and post-bureaucratic systemic elements 90
Table 3.3: Municipal concerns regarding equity in service delivery 98
Table 3.4: AGSA reports 2015 – 2018 107
Table 4.1: London’s Poverty Profile (2013) 148
Table 4.2: Private housing agencies and associations in the UK housing provision
sector 156
Table 4.3: The C2-Connecting Communities 7-Step Framework 166
Table 5.1: Housing units completed and in process in the WCP, 1994 - 2008 185 Table 5.2: Housing units completed and in process in the WCP, 2009 - 2013 186
Table 5.3: Housing units backlogs in the WCP, 1994 – 2009 186
Table 6.1: Questionnaire: Themes and purpose of each theme 205
Table 6.2: Participating municipalities by department (population = 25) 208 Table 6.3: Ranked responses on capacity building focus areas in municipalities’
community services and housing delivery departments 213
Table 6.4: Ranked political factors which impact negatively on service
delivery outputs 214
Table 6.5: Ranked results for respondents’ familiarity with local government
legislation 215
Table 6.6: Ranked results for the top 10 of the 15 IPSS criteria in respect of
xxi Table 6.8: Statistical analysis results with respect to Figures 6.6 and 6.7 223
Table 6.9: Ranked values for 7 items (Figure 6.8, Graph A) 225
Table 6.10: Ranked values for 3 items (Figure 6.8, Graph B) 225
Table 6.11: Statistical analysis with respect to Figure 6.9 227
Table 6.12: Statistical analysis with respect to Figures 6.10 and 6.11 231
Table 6.13: Statistical analysis with respect to Figure 6.12 233
Table 6.14: Statistical analysis with respect to Figure 6.13 236
Table 6.15: Ranked IPSS statements applicable to future dynamic and
interconnected municipalities (concerning community services) 239
Table 6.16: Statistical analysis with respect to Table 6.15 239
Table 6.17: Ranked IPSS statements applicable to future dynamic and interconnected municipalities (concerning integrated systems and integration processes) 240
Table 6.18: Statistical analysis with respect to Table 6.17 240
Table 6.19: Statistical analysis with respect to Figure 6.14 242
Table 6.20: Ranked scores for training needs for developing internal
capacity in respect of collaborative governance (N = 35) 247 Table 6.21: Ranked scores for training needs for developing external capacity
in respect of collaborative governance (N = 37) 248
Table 6.22: Findings on the qualitative and quantitative research regarding the management of an IPSS and PV generation in 15 Western Cape province
municipalities 254
Table 7.1: Barriers to the implementation of IPSS and PV generation in
municipalities 262
Table 7.2: Observations and questions regarding South Africa’s housing and
community services legislative challenges 289
Table 7.3: Constraining factors and mind-sets as listed by senior managers 293
Table 8.1: Normative imperatives for IPSS implementation 314
Table 8.2: Status quo, inertia and path dependency in municipalities 315 Table 8.3: Training elements for achieving holism, connectivity and self-regulation 317 Table 8.4: Training tool for addressing duplication and fragmentation between
departments 317
xxii Table 8.7: Recommendations for rescoping the Integrated Development Plan (IDP) 320 Table 8.8: Training in politics for councillors and managers in municipalities 321 Table 8.9: Recommendations to adopt and initiate IPSS ‘systemic’ norms in
municipalities 322
Table 8.10 Municipal policy effectiveness guide for IPSS operativity and PV
generation 330
Table 8.11: Requirements for the effective implementation of an IPSS operations
model 345
Table 8.12: Tangible and nontangible PV housing delivery and community services
needs and expectations 347
Table 8.13: IPSS performance functions and recommendations for achieving
efficiency and effectiveness in PV generation and public purpose 359 Table 8.14: IPSS and PV performance measures (KPIs) and recommendations for
measuring (evaluating) PV generation and public purpose 360 Table 8.15: Consolidation of resolutions over the short, medium and long terms 361
xxiii Figure 1.1: National network for political, business and citizenry organs in the RSA 10 Figure 1.2: IOS network in relationship with political, business and citizenry networks
in the RSA 11
Figure 1.3: Complex adaptive systems (CAS) and integrated public service systems
(IPSS) share organisational and functional similarities 12
Figure 1.4: Competing Values Framework 18
Figure 1.5a: Strategic Triangle 19
Figure 1.5b: Strategic Triangle 19
Figure 1.6: Civic protest barometer fact-sheet 2018 21
Figure 1.7: Three ‘systemic’ levels for normative modelling of public value
(PV) in an integrated public service system (IPSS) 29
Figure 2.1: The ‘Complexity Pyramid’ showing progression from simple
to complex network structures 40
Figure 2.2: Hub formation: Nodes B, C, D, E, F in relationship with developing
hub A 41
Figure 2.3: Baran’s adapted network diagrams: (a) centralised, (b) decentralised,
(c) distributed IPSSs 42
Figure 2.4: Growth and emergence of integrated networks (IPSSs) 44
Figure 2.5: Enabling diffusion of innovation to enhance integration and growth 45 Figure 2.6: An operational model for an IPSS generating PV: Integration between the
Macro-, Meso- and Micro-level spheres and four PV process states 46 Figure 2.7: Three fundamental IPSS elements for effective operability (systemic
purpose) 47
Figure 2.8: Visual tool for the qualitative assessment of network positional advantage
vis-à-vis environmental changes influencing IPSS 48
Figure 2.9: Integrated framework for network effectiveness 51
Figure 2.10: Management framework for control and trust in different risk scenarios 53 Figure 2.11: Integrative leadership, strategic alliances and collaborative governance
in equilibrial relationship 57
Figure 2.12: A future oriented model for collaboration 57
Figure 2.13: Stakeholder Power-Interest Grid 59
xxiv
Figure 2.16: PV Chain 69
Figure 2.17: Key components of a multidimensional approach to the generation of
public value (PV) 72
Figure 2.18: Measuring PV generation as an integrated evaluation process in an IPSS 73
Figure 2.19: The Public Value Scorecard (PVSC) 74
Figure 2.20: Competing Values Framework for measuring PV generation 75
Figure 2.21: The BBC’s “Two-Step” Public Value Test (PVT) 77
Figure 3.1: Civic Protest Barometer 2007-2014 82
Figure 3.2: Current network topology of Institution of State (IOS) for the
Western Cape province 83
Figure 3.3: The core operational values, principles and practices which comprise
networked governance 89
Figure 4.1: Katatura residential township, Windhoek, Namibia 138
Figure 4.2: The modern (A, B) and the traditional (C, D): Affordable and rental
housing in Willesden, London 144
Figure 4.3: Demolitions for luxury apartments in London 158
Figure 5.1: Delivery of ‘housing opportunities’ in South Africa 185
Figure 5.2: Joe Slovo Phase 3 floorplan with double-storey units and common
courtyard 189
Figure 5.3: The choice between short-term, affordability-driven public housing
(A), and long-term, investment-driven public housing (B) 197
Figure 6.1: An outline of the data-collection process 207
Figure 6.2: Interest and responsiveness displayed during data collection at 25
municipalities in the Western Cape province 207
Figure 6.3: Respondents’ perception of integration and collaboration statements in their daily practice as it relates to service delivery and PV
generation (N = 40) 216
Figure 6.4: Analysis of integration, collaboration and PV generation tasks (N = 40) 218 Figure 6.5: Ranked results for 15 IPSS elements in respect of collaboration, integration,
collaborative governance and PV generation 220
xxv
for service delivery tasks 223
Figure 6.8: Graphs A and B shows respondents’ perception of PV-generating activities
for community building, Items 16 and 17 225
Figure 6.9: Analysis of 17 IPSS functions for managements’ readiness to engage with stakeholders in promoting collaboration, collaborative
governance, integration and PV generation 227
Figure 6.10: Results for 25 PV-generating elements (measures) for outputs, outcomes
and adaptation (N = 39) 230
Figure 6.11: Ranked scores of combined means for 25 PV measures derived from
Figure 6.10 231
Figure 6.12: Results for 16 IPSS operations and performance-management functions (tools and techniques) for achieving efficiency, effectiveness and
equilibrium of PV generated in communities 233
Figure 6.13: Analysis for the emergence of an IPSS generating PV in the future 236 Figure 6.14: Assessment statements for respondents’ willingness to shift from
hierarchical governance to collaborative governance in the future 242 Figure 6.15: Training needs schema for building internal and external capacity 246 Figure 6.16: Collaboration effectiveness, training and capacity building 246 Figure 6.17: Researchers’ assessment of the status of the ODTP: Structure and function
for a rudimentary network schema for housing and community services 253 Figure 7.1: Themes for the evaluation of an emerging IPSS and PV generation 260
Figure 7.2: The elements of an IPSS generating of PV 261
Figure 7.3 Interconnected spheres of government for an IPSS environment 266
Figure 7.4: Three progressively complex network states (contexts) 270
Figure 7.5: Challenges and problems influencing the attainment of equilibrium 276 Figure 7.6: Sources of legitimacy and authority for an emerging IPSS and
PV generation 277
Figure 8.1: Normative rationale for chapter structure 313
Figure 8.2: Essential capacity building areas for IPSS initiation and PV generation 318 Figure 8.3: Normative IPSS cluster model for monitoring and evaluation 324 Figure 8.4: Recognising the progressive attainment of equilibrium as a norm 325
xxvi Figure 8.6: Complexity of IPSS and PV policy development and maintenance 328 Figure 8.7: Components of IPSS stakeholder legitimacy in the developmental
role of the municipality 329
Figure 8.8: A nonlinear IPSS implementation model for PV generation 346 Figure 8.9: Feedback system for a single communication in IPSS operativity 349 Figure 8.10: IPSS strategic direction utilising innovation in PV generation 351
xxvii LIST OF ACRONYMS
ABE Adult Basic Education
AGSA Auditor General of South Africa
ANT Actor Network Theory
BNG Breaking New Ground
BTP Build Together Programme
CAS Complex Adaptive System
CBO Community-Based Organisation
CCT City of Cape Town
CfPS Centre for Public Scrutiny
CGR Collaborative governance regime
CLV-M Customer Lifetime Value - Management
COGTA Cooperative Governance and Traditional Affairs
DAG Development Action Group
DHS Department of Human Settlements (South Africa)
DSD Department of Social Development (South Africa)
EPESTO Economic, Political, Ecological, Social, Technical and
Organisational factors
EPWP Expanded Public Works Programme
GAAP Generally Accepted Accounting Principles
GLA Greater London Authority
HDA Housing Development Agency
HPP Harambee Prosperity Plan (Namibia) 2016-2020
IDP Integrated Development Plan
IGR Intergovernmental relations
IOS Institutions of State (also known as ‘organs of state’).
IPSS Integrated Public Service System
IRDP Integrated Residential Development Programme
ISN (CORC and FEDUP) Informal Settlement Network
ISO International Standards Organisation
xxviii
KPIs Key Performance Indicators
MCA Multi Criteria Analysis: A Manual
MDGs Millennium Development Goals
MRLGHRD The Ministry of Regional and Local Government,
Housing and Rural Development
MSDF Metropolitan Spatial Development Framework
NCOP National Council of Provinces
NDP National Development Plan
NGO Non-Governmental Organisation
NHE Namibian National Housing Enterprise
NHFC National Housing Finance Corporation
NPM New Public Management
NURCHA National Urban and Reconstruction Agency
NVA Network Value Analysis
ODTP Organisational Development Transformation Plan
PPP Public-Private Partnership
PSN Public Service Network
PV Public Value
PVF Public Value Failure
PVM Public Value Management
PVM Public Value Mapping
PVSC Public Value Scorecard
PVT Public Value Test
QUANGOS Quasi-Non-Governmental Organisation
RDP Reconstruction and Development Programme
RHLF Rural Housing Loan Fund
RSA Republic of South Africa
SAHPF South African Homeless People’s Federation
SALGA South African Local Government Association
SAPS South African Police Services
xxix
SDFN Shack Dwellers Federation of Namibia
SDGs Sustainable Development Goals
SHRA Social Housing Regulatory Authority
SOC State-Owned Company
SOE State-Owned Enterprise
SWOT Strengths, Weaknesses, Opportunities and Threats
TDA Transport and Urban Development Authority
TOD Transit-Oriented Development
TQM Total Quality Management
UK United Kingdom
UNESCO United Nations Educational, Scientific and Cultural
Organisation
VNA Value Network Analysis
VPUU Violence Prevention through Urban Upgrading
WCED Western Cape Education Department
1 CHAPTER 1
AN OVERVIEW OF MANAGING AN INTEGRATED PUBLIC SERVICE SYSTEM (IPSS) GENERATING PUBLIC VALUE (PV) WITH REGARD TO
MUNICIPALITIES IN THE WESTERN CAPE PROVINCE
“… systems thinking - from objects to relationships, from quantity to quality, from substance to pattern … a new level of order underlying the seeming chaos” (Capra 1997:113).
1.1 Introduction
South African municipalities are experiencing a challenging metamorphosis which is identified and characterised by the variable quantity and quality of the services and products delivered to their beneficiaries. In a complex material, political and social environment, influenced by a variety of challenges, problems and issues, municipalities are obliged to account to their stakeholders and beneficiaries on how public value (PV) is defined, expounded, produced and measured. Evidence from experience of municipal ‘public management’ theory and practice and the prevailing material conditions of South African citizenry point to a need to explore the dynamics of PV delivery to citizens.
Municipalities and their associate Institutions of State (IOS) are compelled to engage the critical factors relating to the conservation of scarce resources and the promotion of strategic capability, building capacity and sustainable development. There is an implicit expectation from citizens that PV generation and measurement and transparency in this regard, is the ‘core’ business of municipalities. An assumption is made that a high correlation would be found between the generation and measurement of PV and the nature of the prevailing Weberian-bureaucratic system of government. An argument thus arises on the prevailing nature of the
governing system that produces services and products to citizens, an understanding without
which players (stakeholders and civil society) cannot be decisive in their decisions and actions. Since the Weberian-bureaucratic system of government has come under severe criticism since the mid 20th century, complex systems theory and network dynamics begin to address critical problems; hence the integrated public service system (IPSS) and collaborative governance is advanced for research and development. The study thus sets out to define PV (attributes and elements) as a product generated by IOS (the municipality) and stakeholders, which includes the public (communities), as actors and nodes in a complex IOS network.
2
1.2 Background
Municipal management in present South Africa is characterised by more turmoil and setbacks than stability and growth. An examination of reports issued by the IOS, Parliament and the Office of the Auditor-General reveal low productivity, poor or non-existent evaluation of products and services, poor collaboration with communities in respect of planning for sustainable futures. The following features are common to the service delivery protests across the nine provinces, namely, poor (i) service delivery, (ii) land allocation for housing, (iii) water and sanitation provision, (iv) electricity infrastructure, (v) political party responsiveness, (vi) waste removal, and (vii) accountability (De Visser, Powell, Staples and Gilliland 2012:6). The question of community safety and many other socio-economic issues may be added to the list.
Research develops the understanding of underlying systemic dynamics, their nature and characteristics as they pertain to the IOS. The IOS, responsible for the generation and measurement of PV, is compelled to examine how they (i) grow and build productive relationships between their organs, (ii) control and sanction agenda matters, and (iii) shape their public image, factors which often remain largely neglected.
A study of the existing system reveals that the public service system is fragmented, with municipalities rooted as IOS, dependent on how well the system works with the broader network of public institutions, i.e. in producing positive outputs for municipalities and communities. Aspects of the system’s modus operandi would indicate what and how PV is produced, thus steering public managers to focus on the ‘efficiencies’ of the current system. Public participation is therefore integrally linked to the production of added public value, as the demand for openness, accountability and transparency remains implicit (from the citizenry).
Holden and Van Vuuren (2011:4) describe the conditions prevailing within an IOS as a “culture of uncertainty”, in particular where it “requires the active engagement of individuals in political life”. The statement is particular to the present nature of IOS, their determination of the quality and quantity of PV generation, measurement and the extent to which the citizenry is engaged. With particular reference to the importance of access to information, the authors state that “with incorrect, sketchy or incomplete information it is impossible for choices to be made”. Plaatjies (2013:467-468) confirms that maladministration, Auditor General outcomes and non-compliance raise several points on the non-functioning of “basic systems, processes and
3 controls”. Since citizens have expectations and demands concerning universal standards and measures for ‘quality of life’, a study of IPSS, network dynamics and PV generation, within the context of a nonlinear systems rationale, is essential and relevant to municipalities.
Salamon (2002:600) argues for a “new paradigm” and renewed thinking on “new governance”. He makes two critical observations: (i) that “actor-network” implies the incorporation of an “extensive network of social actors” such as the NGOs and organised citizenry, and (ii) there is a need for a new management approach for government organs, based on the “complex systems of public action” in addressing the “management of organisational challenges”.
PV as outputs and outcomes for municipalities and as products of a complex IOS operating network is feasible. PV is in itself a product of a complex IPSS, viewed in terms of its distinct topology. High levels of widespread dissatisfaction among citizens on the matter of poor service delivery is directed at municipalities, rarely at other IOS. Poor results from national ‘turnaround strategies’, high turnover within ministries, increasing social and economic disparity and financial resources wastage fall outside the direct control of the municipality and therefore receive little comment from citizens. The government acknowledges the imperative for greater integration of structures (along with collaborative governance and cooperation between IOS) but seems to fail in its implementation. Global factors such as technological advancement, changing demographics, climate change, as well as cultural, social and political changes place additional pressure on IOS and hence an IPSS to deliver PV (Adejuwon 2012; Chon-Kyun 2008; Sezen 2002; Rogerson 2009).
PV understood as a ‘product’ of an IPSS, offers a rationale for an investigation of the current local government system in its network setting, contextualised in complex systems theory. The knowledge emanating from this research will be utilised in the transformation of municipalities, in respect of efficiency, delivery of quality services and sustainable development.
Systemic and empirical thinking offers a rationale for the claim that PV generation can be measured in relation to what top managers achieve. Logically, non-productivity (idleness) may be measured as sunk costs, when work is done does not equate to tangible achievement of value. Maladministration has a direct relationship with “wasteful expenditure, resulting in non- generation of PV. “Privatization and contracting out have often resulted in corruption, fraud,
4 low quality of service, inefficiency and mismanagement” (Chon-Kyun 2008:52). In the private sector, value production is simple to identify and quantify in terms of sales, stock and market expansion. An important purpose of systems analysis is to measure production, which in the public sector would be constituted by PV produced. A complexity approach to PV generation and measurement in the IOS network places the focus on ‘systemic’ change, complex dynamic systems and network analysis, thereby ensuring measurement of progress. Robbins and Barnwell (2007:450-460) aptly describe the managerial dynamics of the bureaucratic system as characterised by “failure of vision, identity crises, high debt, failure to stay close to the customer”, as well as involving an ageing managerial culture, lack of growth, stagnating strategy formulation, lack of direction and inability to reorganise.
1.3 Motivation for the study
In South Africa, the bureaucratic and New Public Management schools of public management have not been successful in the transformation of IOS with regard to the adoption of the managerial principles of openness, transparency and accountability. Integrated development and collaborative governance are lagging behind, as managers and politicians are locked into a ‘top-down’ modus vivendi, fragmentation and silo structures; hence innovation and systemic growth suffer as a result. The following are the prevailing characteristics of the trend in the management of IOS at present, which are directly linked to the research problem.
The current operating system of the IOS is Weberian, characterised by linear lines of communication, i.e. silo administrations, autocracy, patriarchy, hierarchy and bureaucratic-mechanistic power structures (Johnston 1993:12-13). Management in municipalities is particularly characterised by:
Shortcomings regarding quality service delivery, community participation, good
governance and accountability (De Visser 2011: 2, 8);
Non-efficient utilisation of resources, capacity and use of instruments for measuring
organisational performance (Uys and Jessa 2013:102-122);
Leadership, power and control are administered in a ‘top-down’ and ‘closed’ manner (De
Visser 2011:16). Power distances in the workplace inhibit innovation, creative work styles and free-spirited initiatives between ailing communities and the municipality;
The quality of housing for working-class communities, an inability to mitigate social
5 educational amenities, shortfalls in sanitation, electrification and basic infrastructure requires attention. Municipal management is strained by (i) ‘inadequacies’ in the education of ‘leaders’, (ii) bully-ism from ‘leaders’ and top officials, (iii) skewed and unclear performance reporting from departments (Shicheka 2009; Uys and Jessa 2013);
Democratic impediments and practices for citizenry are neglected, such as ward committee
dysfunctionality (De Visser 2011:17; De Visser and May 2011:11); and
Poor quality of financial statements, performance monitoring and leadership; poor
spending practices and compliance (Plaatjies 2013:467 – 468; De Visser 2011:2).
Municipal systems are characterised by stringent hierarchical structure and practices in a global environment which demands greater citizen engagement and collaborative governance. It is, therefore, appropriate to propose an alternative to the hierarchical system of government and governance, which is an IPSS generating PV.
1.4 Literature review
The literature review provides a broad understanding of the various components of the research problem while outlining the elements of an IPSS generating PV. The generation and measurement of PV by an IPSS will be regarded as the central theme of the literature review; this occurs in an environment where the IOS are compelled to face growing scrutiny of their behaviour in dynamic and complex business and managerial environments.
The nature of the present municipal system (hierarchical, linear and bureaucratic) is to a large degree a ‘closed’ (inwardly focused) entity. This results in the bypassing of the socially oriented approaches of ‘Masekhane’ and ‘Batho Pele’ in South Africa as they relate to participation by citizenry; in addition, empirical evaluation of programmes, preference for teamwork, participatory scenario planning, openness on cost-benefit and cost-efficiency analysis do not feature prominently as systemic imperatives. Hence the quantification of output, outcomes and quality in lieu of reporting to beneficiaries is lacking.
1.4.1 Factors influencing PV generation in a complex environment
Compelled to address the ‘ossification’ and inertia in the realm of municipal delivery with regard to sustainable development, social progress and the quality of life of the citizenry, one has to study the dominant managerial system. Benington (2012:slide 1a) holds that the
6 economic, political, ecological, social, technical and organisational (EPESTO) factors impact on operating systems and therefore require recognition in terms of their importance to new approaches to public management systems theory. Within the realm of the EPESTO factors, one has to define and acknowledge the importance of measuring PV produced. The principles and criteria formulated in respect of PV generation are impacted on by EPESTO factors which influences the quality and standards of life of citizens directly.
As the EPESTO factors are external to systems (such as the IPSS), the ‘internal’ factors influencing PV generation are (i) how the IOS operating in a network produces and measures PV; (ii) the dynamics and operations within a complex system; (iii) the emergence of an IPSS; and (iv) IPSS in relation to complex adaptive systems (CASs). Hills and Sullivan (2006:31-34) propose PV criteria such as trust, accountability, equity, efficiency and legitimacy; however, the factors influencing these criteria are (i) appropriateness, (ii) holism versus fragmentation, (iii) democracy versus hierarchy, and (iv) ability to absorb organisational transformation (Hills and Sullivan 2006:31-34). Osborne and Gaebler (in Hills and Sullivan 2006:52) argued that measurability of outputs is an essential factor for efficient management. The interpretation of what the tangibles and nontangibles are can be challenging in defining and measuring PV. In defining concepts such as the principle of uncertainty, entropy, dynamical systems and General Systems Theory (GST); factors influencing these need to be stated for the sake of its practicalities for implementation. The factors influencing PV generation, its definition, measurability and criteria will be addressed in Chapter 2.
1.4.2 An overview of chaos and complexity theory relative to PV generation
The theoretical-conceptual framework of the study will be presented in Chapter 2; it will integrate the theory of (i) PV, (ii) the complexity of the IOS network environment, (iii) the emergence of an IPSS as compared with the elements of the CAS, and (iv) explore IPSS significance for the particular metasystem in which public management resides. The concepts of collaboration, integration and governance are addressed as elements of an IPSS. Uys (2002:23), in elaborating on chaos and complexity, holds that chaos theory is an “approach for better understanding of the contemporary complexity of organisations and the environment”; it is a tool in bringing about “new ways of thinking and acting that can radically change the future managerial practices in organisations”, heralding a new management paradigm. He employs chaos theory and complexity science as a means to an end, i.e. a means to unlock
7 criteria and principles for the measurement of PV. Uys (2002:16) raises the critical issue of adaptation to new ways of “learning” in times of uncertainty and an “unstable environment”.
A complex system is defined by Brown and Lerch (2007:81) as having “component elements or subsystems that are all related to each other in some way”, and which has “a structure, or metasystem, that determines how these elements relate to each other”. Systems make it possible for “feedback loops” to occur, which may be “positive (reinforcing) or negative (balancing)” (Brown and Lerch 2007:81). Complexity and complex systems enquiry may be applied to social and scientific fields where a phenomenon is best understood in its state of effervescence, such as in “adaptive systems, neural nets, nonlinear dynamics and far-from-equilibrium conditions … interrelated parts and subtle relationships” (Praught 2002:2-3). In complexity states, a change in one (catalytic) criterion sparks off a change in another, i.e. the “butterfly effect” (Praught 2002:3). These criteria, or “parts of the system’s structure … which influences the system’s behaviour”, are referred to as “leverage points” (Brown and Lerch 2007:82), i.e. the point at which a system initiates a change in another entity. The study of ‘leverage points’ is applicable to the operability of IPSSs, IOS structures and networks in general.
Complexity science allows an entity such as a network to be understood in terms of its elements, two of which are unpredictability and uncertainty. Handy (1991:7) deems that within the theoretical world of systems, resistance to change is short-lived, given that “as discontinuity is not a catastrophe”, change has huge implications and potential for “new ways of looking at things”. Complexity is about “upside-down thinking … re-framing … ability to see things in other ways” (Handy 1991:19, 52). The concept of complexity has reference to the theory and constructs of complex states, insofar as a type of phenomenon or behaviour is revealed; the principles of complexity allow for the cursory examination of systems, while it is not to be confused with systems as catalysts. “The theories of complexity provide a conceptual framework, a way of thinking, and a way of seeing the world” (Mitleton-Kelly 2003:4).
Prigogine and Stengers (1984:188-189; 208-209) deem that in the modern world one relies on “complexity, irreversibility and thresholds of stability” along with simplicity and the belief that complex systems such as ecosystems have a long lifespan. For the benefit of the study the researcher will approach the IOS network as a complex body, (i) listing and analysing the elements and criteria by which it is known and by which it behaves, and (ii) rely on feedback
8 from a methodological and empirical (data-collection) process to sketch an outlook for its future as an engine in PV generation. Chaos theory assists in the understanding of complex dynamic systems and may offer the means to an end, i.e. order and high productivity may be achieved when the complexity and ‘chaos’ of networks are sufficiently understood.
Weberian (legal-rational) approaches to systems analysis and thinking have been superseded by principles of the nonlinear, network, complexity and chaos theory. Complexity (and chaos) theory argues that in order to understand a system, it is necessary to unpack it into smaller subsystems, entities or parts that assemble the ‘whole’. It is argued that the whole could be better understood based on its smaller parts (Van der Waldt 2012:95). PV produced intangible and nontangible forms in complex networks must be measurable (quantifiable), thus able to identify products and knowledge employable in municipalities (Talbot 2008:3; Moore and Khagram 2004:9; Agranoff 2003:2-7). Since value (PV) and knowledge are therefore co-dependent (in a symbiotic relationship) and self-regulating, one may argue that little value will be produced without knowledge catalysts, hence the importance of the epistemological paradigm in the study of complexity. Handy (1991:4) states that “Change … is only another word for growth, another synonym for learning”.
1.4.3 Complexity in the context of South African Institutions of State (IOS)
Prigogine and Stengers (1984:188) postulate that “the more complex the system is, the more numerous are the types of fluctuations that threaten its stability”. The delivery of services and goods to citizens (in the context of the IOS, Western Cape) requires examination in terms of current systemic complexity, stability and the factors which influences ‘systemic’ ability to maintain cohesion and sustain productivity. Relationships between the IOS network actors (actors) are characterised by little-understood internal and external factors, political persuasions, managerial focus, power bases, leadership competitiveness, competencies, affirmative action constraints, corruption and a desperate clinging to anachronistic systemic controls. Complexity is increased by ‘red tape’ (legislation, regulation and policy) and therefore influences the ability of municipalities to be strategic, visionary and ultimately expedient in the way they operate. Municipalities, therefore, have a crucial role as policymakers, thinkers, innovators, and institutions of local democracy. Brown and Lerch (2007:82) state that “sensitive actors” can initiate change that is likely to affect a change in all the other elements within a metasystem. Government policy documents do not define, set parameters, exploit or
